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Capacity crunch spikes pricing for U.S. trucking

     Speeding truck

Steep price increases for trucking are now taking effect with the mandatory requirement for Electronic Logging Devices (ELDs) in the U.S. as of December 18, 2017.  The ELD is intended to help create a safer work environment for drivers, and make it easier and faster to accurately track, manage, and share Records Of Duty Status (RODS) data.  An ELD synchronizes with a vehicle engine to automatically record driving time for easier, more accurate Hours Of Service (HOS) recording.  HOS regulations stipulate that a driver may not drive beyond 11 hours, or be on duty more than 14 consecutive hours, before requiring 10 consecutive hours off duty.

Beyond the financial cost of the ELD implementation, the newly enforced strict adherence to the HOS regulations has greatly reduced the capacity of available drivers on the road.  Couple this with a very strong U.S. domestic market, and the result is a drastic spike in truck pricing within the U.S. and between the U.S. and Canada.

In the last week of December, just one truck was available for every 12 loads needing to be shipped, the biggest imbalance since October 2005, when the after effects of Hurricane Katrina were being felt.

Shippers are responding by delaying non-essential shipments or paying a premium to ensure trucking will be available when needed. 

Our truck freight expert, William Sanchez, is available to assist anyone who needs help with managing existing or planned truck shipments.  “With a little creativity and long term planning, it is possible to get around or at least minimize the difficulties created by the tightening market for U.S. trucking,” says William.

For more information, contact William Sanchez, Manager – Truck Services.

Quick Tip #58
Be prepared for customs penalties and fines under AMPS

Never assume that the absence of an audit means you will never be audited.  Penalties under AMPS (Administrative Monetary Penalty System) can be applied at the border at time of import (or export) and also post audit.

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